Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
AT&T Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reveals notable fluctuations in both net cash provided by operating activities and free cash flow to equity (FCFE) over the observed periods.
- Net Cash Provided by Operating Activities
-
The net cash provided by operating activities demonstrates a generally downward trend from 2020 to 2022, decreasing from 43,130 million US dollars in 2020 to 35,812 million US dollars in 2022. However, there is a moderate recovery in subsequent years, with figures rising to 38,314 million US dollars in 2023 and slightly increasing further to 38,771 million US dollars in 2024. Despite this partial rebound, the values in 2023 and 2024 remain below the 2020 peak, indicating some operational cash flow challenges during the earlier years.
- Free Cash Flow to Equity (FCFE)
-
The free cash flow to equity shows significant volatility across the five-year span. It starts at 19,435 million US dollars in 2020 and surges sharply to 47,881 million US dollars in 2021, reflecting an exceptional increase that likely denotes favorable financial management or operational efficiency during that period. However, this trend reverses dramatically in 2022, with FCFE plunging to a negative value of -20,862 million US dollars, signaling considerable cash outflows to equity holders or increased capital expenditures impacting free cash availability.
Following this dip, FCFE recovers to 19,498 million US dollars in 2023, which evens out near the initial levels observed in 2020 but remains substantially lower than the 2021 peak. In 2024, FCFE declines again to 6,234 million US dollars, suggesting renewed constraints in free cash flow generation for equity holders.
Overall, the operational cash flows have shown resilience despite initial declines, but free cash flow to equity exhibits high instability, with a pronounced peak in 2021 followed by a sharp downturn and modest recovery. The fluctuation in FCFE may warrant further examination of the underlying factors such as capital expenditure, debt servicing, and equity transactions influencing cash flow to equity holders.
Price to FCFE Ratio, Current
AT&T Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 7,195,602,178 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 6,234) |
| FCFE per share | 0.87 |
| Current share price (P) | 28.08 |
| Valuation Ratio | |
| P/FCFE | 32.41 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| T-Mobile US Inc. | 22.02 |
| Verizon Communications Inc. | 12.85 |
| P/FCFE, Sector | |
| Telecommunication Services | 20.08 |
| P/FCFE, Industry | |
| Communication Services | 28.21 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
AT&T Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 7,178,183,000 | 7,152,792,253 | 7,129,870,323 | 7,142,892,741 | 7,131,763,496 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 6,234) | 19,498) | (20,862) | 47,881) | 19,435) | |
| FCFE per share3 | 0.87 | 2.73 | -2.93 | 6.70 | 2.73 | |
| Share price1, 4 | 25.36 | 16.80 | 19.26 | 23.94 | 28.63 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 29.20 | 6.16 | — | 3.57 | 10.51 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| T-Mobile US Inc. | 21.93 | 19.36 | — | — | 15.91 | |
| Verizon Communications Inc. | 12.29 | 15.64 | 11.68 | — | 6.75 | |
| P/FCFE, Sector | ||||||
| Telecommunication Services | 19.18 | 11.95 | — | 16.08 | 9.24 | |
| P/FCFE, Industry | ||||||
| Communication Services | 27.55 | 21.90 | 31.95 | 26.51 | 20.53 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,234,000,000 ÷ 7,178,183,000 = 0.87
4 Closing price as at the filing date of AT&T Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 25.36 ÷ 0.87 = 29.20
6 Click competitor name to see calculations.
The analysis of the annual financial data reveals several notable trends over the five-year period ending December 31, 2024.
- Share Price
- The share price experienced a downward trend from 28.63 US$ in 2020 to a low of 16.80 US$ in 2023, indicating a significant decline over these years. However, in 2024, the share price rebounded strongly to 25.36 US$, suggesting renewed investor confidence or improved market conditions in the final year of the series.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share displayed considerable volatility during the period. It increased sharply from 2.73 US$ in 2020 to a peak of 6.70 US$ in 2021, indicating improved cash flow generation available to equity shareholders. This was followed by a substantial decline to -2.93 US$ in 2022, marking a negative cash flow scenario. The FCFE rebounded back to 2.73 US$ in 2023 but then fell again to 0.87 US$ in 2024. This fluctuation points to instability in the company’s capacity to generate cash for shareholders.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio showed a fluctuating pattern with meaningful gaps in data. It started at 10.51 in 2020, decreased sharply to 3.57 in 2021, data was missing for 2022, then increased to 6.16 in 2023, and surged to 29.20 in 2024. The sharp increase in 2024 is particularly significant and can be attributed to the combination of a rising share price and a relatively low FCFE per share. This elevated multiple may imply that the market is pricing the stock at a premium relative to its free cash flow generation or anticipating future improvements.
Overall, the trends indicate a company experiencing significant cash flow volatility, which has impacted its valuation measures. The recent increase in share price alongside a high P/FCFE ratio suggests market optimism despite the underlying cash flow challenges observed in prior years.